ACTUAL STATE AND POTENTIAL OF LOGISTICS CENTERS IN SMALL AND MEDIUM SIZED CITIES NEAR THE EUROPEAN CORRIDORS 4 & 8 in BULGARIA

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1 ACTUAL STATE AND POTENTIAL OF LOGISTICS CENTERS IN SMALL AND MEDIUM SIZED CITIES NEAR THE EUROPEAN CORRIDORS 4 & 8 in BULGARIA Prof. Assoc., Dr. Vikenti SPASSOV Chef of Department Logistics of engineering University of Transports T. Kableshkov, 1574 Sofia, BULGARIA vspassov@vtu.bg tel : ; ; fax :

2 INTRODUCTION European business and industry is currently going through a phase of reconstruction linked to its desire to become a more competitive power global markets. The access of Central and Eastern European (CEE) countries to EU markets is vitally significant for their economic development, especially in a period of reform. The commercial stability and prosperity of Bulgarian companies in a common market require reduction of supply costs, operational management of production and distribution, parallel with diversity of forms and an increase in the quality of customer service. Therefore modeling the dislocation of enterprises, distribution junctions, warehouses, terminals, free zones, big commercial chains and infrastructure objects and facilitating access to these, becomes more and more important for: - Maximizing the results from each investment made, - Decreasing the production costs, and - Minimizing the added value through the movement of products to the end consumption points.

3 Corridors 4 and 8

4 Port of Lom A traffic forecast based on sector analysis shows that the port s overall turnover of about 1.5 million tons in 1997 will increase to about 3.2 million tons in the year 2005.

5 The port complex consists of the Port of Lom (Danube-km 742-3, i.e. 200 stream-kilometer seats of the iron gate locks) and the Port of Orjahovo (Danube-km 678).

6 Investment Opportunities for Port Lom The project investments for reconstruction and modernization of the Port of Lom in the Program 2005 are: Total value: Euro Bank credit: Euro (negotiations) Own funds: Euro Concession. BOT. PPP: Euro

7 Metalsnab - Example of a Bulgarian logistics and distributing company with a Bulgarian distribution network METALSNAB Holding Co is a leading metal-trading group in Bulgaria. METALSNAB Holding Co supplies: * Rolled ferrous metals - reinforced steel, I-and U-profiles, steel sheets and plates; * Metal products - zinc and tin-coated sheets, strips, wire, seamless and section-pipes; * Raw and foundry materials; * Non-ferrous metals - aluminum, copper, brass and bronze rolled products; The real estate of the metal trading company "Metalsnab-Lom" S.C. occupies sq.m. territory. The company has a covered warehouse corpus, comprising two store halls, each 120m long, 36m wide and 12m high.

8 TOWNS MONTANA AND LOM In the Bulgarian town Montana, which is also a part from Pan-European transport corridor No.4 are located the following companies: USMA, Montitrans and Montanasnab. The company USMA have a three logistics centres with warehouses in Montana, Vratza and Vidin. "Balkancar-Dunav Lom" S.C. is one of the four main enterprises of the greatest producer of electric- and motor- forklift trucks in East Europe - "Balkancar" EOOD. This enterprise is located some 1000 meters from the port area of the town of Lom, the access being facilitated by railway line of its own. It has unoccupied logistical possibilities. Proposals to the possible investors: the company "Balkancar-Dunav Lom" S.C. is under procedure of privatization so that the whole company or separate units of it are to be purchased; some store areas could be let for rent; establishing joint-ventures;

9 Port of Vidin

10 The port has a well-developed infrastructure and a superstructure, as well as free capacity for passing of transit commodities and freight. The port is directly connected with the national transport networks through a railway and a highway. It also connected with Romania through the auto and railroad ferries. The availability of duty free zone near the Northern port complex gives the opportunity of developing and maintaining a united port complex. The water and land area of the Port of Vidin is from km 785 to km 795. A warehouse center of the company "Vidasnab" EOOD has operated for 20 years in the western industrial district of the town of Vidin. It comprises a warehouse complex (4 covered warehouses), an open-air warehouse (overhead), an independent covered warehouse and an office building.

11 Thank you very much for your attention